--- title: "Sanand Properties vs Joint Commissioner, CIVIL APPEAL NO. 9107 OF 2012 [Arising out of Special Leave Petition (Civil) No. 22613 of 2012], May 12, 2026" date: 2026-06-30 author: "Akriti Sharma" url: https://ksandk.com/newsletter/reassessment-under-section-147-148-income-tax-act/ --- # Sanand Properties vs Joint Commissioner, CIVIL APPEAL NO. 9107 OF 2012 [Arising out of Special Leave Petition (Civil) No. 22613 of 2012], May 12, 2026 Posted On - 30 June, 2026 • By - Akriti Sharma The Supreme Court ruled in favour of the Revenue and held that reassessment proceedings under Sections 147 and 148 of the Income-tax Act, 1961 are valid where subsequent material reveals that the true nature of a transaction was not fully and truly disclosed during the original assessment, even if the underlying agreements and accounts had been produced earlier. The Court clarified that production of books of account or supporting documents does not by itself amount to full and true disclosure of all material facts and reopening based on fresh information concerning the real character of a receipt is not a mere change of opinion. On the merits, the Court examined an AOaP arrangement under which the assessee was entitled to 35% of the gross sale proceeds of a housing project before deduction of any project expenses. The Court held that such receipts could not be regarded as a share of profit exempt in the hands of an AOP member, since profit arises only after deduction of business expenses. As the assessee’s entitlement accrued directly from gross sale proceeds and was insulated from business expenditure, the amount represented business income diverted at source through an overriding title and was taxable in the assessee’s hands. The Court further reiterated that the validity of reopening must be tested strictly on the basis of the reasons recorded under Section 148 and cannot be supported by extraneous material not forming part of those recorded reasons. Accordingly, the Court upheld the validity of the reassessment proceedings and held that the assessee’s 35% share of the gross sale proceeds constituted taxable business income and not an exempt share of the AOP’s profits. *Last Updated on 30 June, 2026* --- ## Office Locations - [New Delhi](https://ksandk.com/locations/top-corporate-law-firm-in-delhi/) (HQ): +91-11-41318190 | info@ksandk.com - [Mumbai](https://ksandk.com/locations/top-corporate-law-firm-in-mumbai/): 3 offices (Nariman Point, Lower Parel, Andheri) | mumbai@ksandk.com - [Bangalore](https://ksandk.com/locations/top-corporate-law-firm-in-bangalore/): bangalore@ksandk.com - [Chennai](https://ksandk.com/locations/chennai/): chennai@ksandk.com - [Hyderabad](https://ksandk.com/locations/hyderabad/): hyderabad@ksandk.com - [Pune](https://ksandk.com/locations/pune/): pune@ksandk.com - [Kochi](https://ksandk.com/locations/kochi/): kochi@ksandk.com ## Contact - [Contact Page](https://ksandk.com/contact-us/) - General: info@ksandk.com | +91-11-41318190 - WhatsApp: +91-7428567444 - [Privacy Statement](https://ksandk.com/privacy-statement/) - [Terms of Use](https://ksandk.com/terms-of-use/)